| It can be a horrible task negotiating to buy a new | | | | cut out of this, but even so $5000 is a little steep! |
| car, nobody likes doing it because it's so time | | | | Use the popular automotive websites and research |
| consuming, stressful and frustrating! Very few people | | | | exactly how much it costs, this figure will be very |
| actually like sales people, but it's pretty easy to work | | | | useful when negotiating. |
| out exactly what you should do. You need to | | | | Now you're ready to propose your offer to the |
| research the background information so that you can | | | | dealer, this is always a difficult situation and it can be |
| get a fair price when buying your new car. | | | | made worse by your financial position. You should try |
| Research what the price of the car originally was | | | | to start at about $4000 less than the price |
| when it first came out. You should use this to work | | | | advertised. Few dealers will listen to this, but let them |
| out the dealer cost, which is the cost of the car | | | | raise your price a little, but it they still don't want to |
| when the dealer brought it from the manufacturer. | | | | sell it at that price then move on. |
| This cost is made up of the dealer invoice, and the | | | | Some sales people have to go to their managers to |
| holdback. | | | | ask permission about a certain price. This is just a |
| The dealer invoice is the actual cost that the dealer | | | | sales tactic. Make them aware that you only want to |
| pays for the car. There are many different online | | | | talk to one person about your offer. |
| resources like the Kelly Blue Book, and Edmunds all of | | | | Many garages also make you wait for a very long |
| which can provide very useful information on the | | | | time before they will actually tell you their final |
| dealer invoices. | | | | decision. If you're not aware of this then it can catch |
| The holdback is the rebate that the manufacturer | | | | you out. Make sure you're prepared for a long wait; |
| pays the dealer when the car is sold. The rebates will | | | | in fact try taking some reading material! |
| depend on the make and model of the car; it's | | | | Sometimes dealers have a sneaky habit of |
| normally around 2-3% of the total value of the car. | | | | advertising a very low price, and when you actually |
| You should subtract this holdback from the costs to | | | | get there they raise the price. They can do this by |
| work out the actual cost of the car to the dealer. | | | | adding on lots of extras, or just being unreasonable. |
| Now you should calculate any hidden incentives that | | | | Never accept this, no matter how small the price rise |
| the dealer has. It can be difficult to know about the | | | | is. |
| dealer incentives. If you are aware of any of the | | | | It is not possible to negotiate on all cars; if they are |
| hidden incentives then you can talk about them | | | | more popular then it is much more difficult to get a |
| during the negotiation. | | | | discount. If you have tried a number of different |
| Dealers seem to ask about $5000 more than they | | | | dealers, but still get the same price, then you might |
| originally paid for the car, they do have to take their | | | | as well go for it. |